🤑 Strong Dollar Leads to Gold Falling to Over One-Month Low⤵️📉

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Robust economic data drives the rise of the US dollar and US Treasury yields 📈📊, reducing market expectations of a US rate cut in March. As the US dollar continues to strengthen, gold prices fell to over a one-month low on Wednesday (17th). The spot gold price dropped 1.09% to $2006.25 per ounce (approximately 9460 Malaysian Ringgit) on the 17th, marking the lowest since December 13th. It also declined 1.3% in the previous trading day, marking the largest single-day decline since December 4th of the previous year. US gold futures also fell 1.2%, closing at $2006.5 (approximately 9462 Malaysian Ringgit).

🇺🇸📈 US retail sales grew by 0.6% month-on-month last month, exceeding expectations. After the data was released, the US dollar index hovered near a one-month high. Frank Jolly, Senior Market Strategist at RJO Futures, pointed out that market doubts about whether the Federal Reserve will cut interest rates early are putting pressure on gold prices. With the strong US dollar and the time needed for rate cuts, it is difficult for gold prices to maintain an upward trend. ⚠️ “However, geopolitical risks will continue to provide support, keeping gold prices around $2000 (approximately 9431 Malaysian Ringgit).” Spot silver fell 1.7% to $22.52 per ounce (approximately 106.19 Malaysian Ringgit), platinum fell 1.3% to $883.02 (approximately 4164 Malaysian Ringgit), and palladium fell 2.1%, touching its lowest level since 2018 at $916.82 (approximately 4323 Malaysian Ringgit). 📍⏬

Brent Crude Oil Declines

Severe winter weather hampers some oil production in the US, ⤵️ and on Wednesday (17th), New York crude oil futures closed slightly higher. Still, disappointing Chinese economic growth rates raised concerns about energy demand, causing Brent crude oil futures to fall. Brent crude oil futures for March fell 41 cents (approximately 1.93 Malaysian Ringgit), a decrease of 0.52%, closing at $77.88 per barrel (approximately 367.24 Malaysian Ringgit); New York crude oil futures for February rose by 16 cents (approximately 75.45 cents), closing at $72.56 per barrel (approximately 342.16 Malaysian Ringgit). 🛢️💵 According to Lipow Oil Associates, the president of Lipow Oil Associates, Andrew, pointed out that these supply concerns caused the decline in US crude oil futures to converge at the end of the session, having previously fallen by more than $1. 📜🔎 Surveys indicate that US crude oil inventories are expected to decrease by about 300,000 barrels last week, but this is before the onset of severe winter weather. China’s economic growth rate in the last quarter of last year was 5.2%, lower than analysts’ expectations, raising doubts about whether China’s demand can drive global oil growth this year. 🕵🏻‍♂️🕵🏻‍♀️ Investors have been monitoring the Red Sea conflict, and although oil ships have had to suspend or change routes, leading to higher transportation costs and delayed delivery times, this has not provided support for oil prices. Fatih Birol, the head of the International Energy Agency (IEA), expects the oil market to be in a ‘comfortable and balanced state’ this year, despite tensions in the Middle East, 😣😖 still facing the prospect of increased supply and slowing demand growth.

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